Wisdom Education faces testing time as it launches IPO

Southern China's largest private school operator sets Hong Kong IPO despite uncertainty over China's educational structure and future tax structure.
Pupils at Wisdom's Dongguan Guangming School
Pupils at Wisdom's Dongguan Guangming School

Wisdom Education launched an initial public offering on Thursday, hoping to become the third Chinese private sector education operator to list on the Hong Kong Stock Exchange.

The group has picked a tricky time to access the market with its HK$850 million to HK$1.14 billion $110 million to $147 million transaction as the Chinese education sector is undergoing an uncertain transition.

Last November, the government promulgated a new education bill, which analysts hailed as a crucial step to shape the long-term structure of the Chinese educational sector.

However, the exact dimensions have yet to be spelled out and particularly the financial impact...

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